Two c-level surveys find that execs expect investment, growth, acquisitions in 2012
January 23, 2012 -- Two studies released in late January are guardedly optimistic about prospects for business in 2012. A JEGI survey says that most media companies are looking to develop new products and revenue streams, while larger media companies now have the reserves and motivation to look toward making acquisitions. An AlixPartners/EIU survey also reports that companies around the world are planning to use surplus cash to grow business.
JEGI, an ABM member, released the 2012 Media Growth Survey Report at its 2012 Media & Technology Conference on Jan. 19. “Overall, senior executives are generally optimistic about the health of their markets coming out of the economic downturn and see new product launches, organic growth and expansion of market share within existing markets as key growth drivers,” the report concludes.
Polling c-level executives at large media companies (over $50 million in annual revenue), two-thirds said that they expect their company to make an acquisition in the next 12 to 24 months. Three-fourths of all media company respondents said they plan to launch new products and services in 2012. In considering the highest hurdles to revenue growth, the challenge cited most frequently (by 44 percent of respondents) was a need for the right workers in emerging areas. According to JEGI founder and CEO Wilma H. Jordan, “When it comes to growth, the key barriers have to do with the lack of talent necessary to take advantage of opportunities.”
Another survey, also released on Jan. 19, was conducted more broadly, but offers similar conclusions. The report, titled “Winners Don’t Play Dead: Doing More with Less in an Uncertain Future,” was conducted by the Economist Intelligence Unit for AlixPartners. It reveals that technology, new market expansion and acquisitions are the top priorities for companies that are slowly emerging from a recessionary economy with cash reserves to invest. Among survey respondents in the United States, 45 percent have larger cash reserves than they did three years ago, and 40 percent see North America as the most important source of economic growth in the next 12 months.